HM Treasury and the Department for Business and Trade have launched the government’s industrial-strategy green paper, which will be worked up into a full plan ahead of next spring’s comprehensive spending review.
Chancellor Rachel Reeves and business secretary Jonathan Reynolds also announced that Microsoft UK chief executive officer Clare Barclay will chair the new Industrial Strategy Advisory Council being created to feed in stakeholder views.
Reeves and Reynolds launched Invest 2035 ahead of yesterday’s International Investment Summit, which spotlighted £63bn in investment recently secured for new projects – such as data centres, offshore power generation and boosted port capacity.
The 10-year plan identifies eight growth sectors the government will focus on. They are: advanced manufacturing; clean energy industries; creative industries; defence; digital and technologies; financial services; life sciences; and professional and business services.
HMT and DBT said the industrial strategy would channel support to sectors and geographical clusters with the highest potential for growth over the next decade. They said the strategy would “create a pro-business environment” to capture a greater share of “internationally mobile” investment in strategic sectors and motivate domestic business to increase investment.
The strategy will focus on tackling barriers to growth in the nation’s “highest potential growth-driving sectors and places” in a bid to create the right conditions for increased investment, high-quality jobs and positive impact for communities across the UK. It also aims to support the nation’s commitment to become a net-zero carbon emissions economy by 2050 and deliver wider economic security.
Reeves said she had “never been more optimistic” about the UK’s potential.
“We have some of the brightest minds and greatest businesses in the world,” she said. “From the creative industries and life sciences to advanced manufacturing and financial services.
“This government is determined to deliver on Britain’s potential so we can rebuild Britain and make every part of the country better off.”
Reynolds said the work-in-progress industrial strategy would “hardwire stability for investors” and give them the confidence to plan for the next decade and beyond.
“This is the next step in our pro worker, pro business plan which will see investors and workers alike get the security and stability they need to succeed,” the business secretary said.
Mike Clancy, general secretary of the Prospect union – which counts civil servants and a host of technical experts in sectors ranging from defence to energy and environment among its members – said the industrial strategy was long overdue.
“It is high time the UK had a proper industrial strategy bringing together government, business, trade unions and other stakeholders to address the UK’s urgent need to boost investment and innovation, improve growth and meet pressing societal and environmental challenges,” he said.
HM Treasury and DBT said the next stage of development for the industrial strategy would be prioritising sub-sectors within the eight growth areas where there is “evidence that policy can address barriers to growth”.
The green paper document said “ambitious and targeted sector plans” would be designed in partnership with business, devolved governments, regions, experts and other stakeholders.
It added that the industrial strategy and sector plans will be published alongside the Spending Review in the spring of next year, when Reeves is expected to set out multi-year funding allocations for departments.
Microsoft UK boss will chair Industrial Strategy Advisory Council
Reeves and Reynolds also used yesterday’s raft of business-related announcements to confirm that Microsoft UK chief executive officer Clare Barclay will lead the government’s soon-to-be-created Industrial Strategy Advisory Council.
The council will “inform the development of the industrial strategy” through its expertise, evidence and work with business, trade unions, devolved governments, local leaders, academia and stakeholders.
Creating the council and putting it on a statutory footing with powers and responsibilities “ensuring it will be permanent and independent” were commitments set out in July’s King’s Speech.
HMT and DBT said that because the council’s formal establishment had yet to take place, an “interim advisory council” would be introduced. Its first meeting and full membership details are “expected in the coming weeks”.
Barclay said that as chair of the council, she would ensure that the body provided a “clear and strong voice” for business, devolved nations, regions, and unions to ensure “prosperity is underpinned by robust growth in key sectors” as the nation invests for the future.
“Whilst we fully embrace the industries of today, we must also have a clear plan for future growth, and the advisory council will play a central role in shaping and delivering this plan,” she said.
Reynolds said: “Clare’s wealth of talent and experience will help ensure the industrial strategy delivers its mission of unleashing the potential of high productivity sectors to spur growth, spread wealth, and drive-up employment across the UK.”
HMT and DBT also announced the creation of a new “supply chains taskforce” yesterday, reflecting confidence in supply chains as an important driver of businesses’ willingness to invest.
According to the departments, the taskforce will look at potential supply-chain vulnerabilities that could affect sectors critical to the UK’s economic security and resilience – as well as the sectors targeted as key for growth.
“The taskforce will ensure that government works with business to address these risks, building the conditions required to deliver secure growth,” they said.